by Theresa Ann White

Created on: March 20, 2009

Don't wait to pursue financial freedom when you are in the midst of financial catastrophe. At this point, financial freedom will be equated to a debt-free, collection-free existence. But financial freedom is a series of practices over many year's time. It combines daily habits with long-range planning. Here are ten ways to maintain the status of financial freedom.

1. Budget

This practice is by far one of the essential ingredients to financial freedom. Use an application such as Quicken to set up a personal budget. Stick with it. Google also offers free budget templates. Living outside your means is the quickest route to financial catastrophe. Living within your income is the direct path toward financial independence.

2. Track Daily Expenses

This is an eye-opening practice that leads to a consciousness about your financial state. Keep receipts and enter them daily in your personal accounting software program. Enter checks as you write them. Keep an eye on your balances. Never go into the red. Overwhelming debt is the number one cause of financial distress.

3. Reduce Spending

Impulse buying enriches the seller, not the buyer. Resist the urge to buy that glossy magazine while waiting at the check-out lane. Drive past the fast food shop and go to the grocery store instead. Prepare home meals and control the urge to eat out. Bring your lunch to work. Don't buy that tenth pair of shoes because of their momentary appeal. Visit the nearly-new shop. Bargain hunt. Put a stop to the numerous cash leakages.

3. Pay Credit Card Debt in Full Each Month.

This may sound like an impossibility if you use your credit to survive. So the point is not to rely on credit cards to pay for essential expenses. Credit card use should be reserved for one-time, special purchases when your cash on hand cannot cover the expense. Use your credit card frugally. Before making that purchase, ask yourself if your income will be sufficient to pay off the debt within the next billing cycle. If the answer is "no," then reconsider the purchase.

4. Barter, Swap, Use Coupons

These practices are valuable for creating a mentality of economy. They may seem to have minimal impact of your financial status but cost-saving measures all work together to preserve your liquid assets. Trade a service for a service - mow your neighbor's lawn in exchange for handiwork. Cut coupons and put them to work. Each small practice of frugality is keeping money in your pocket.

5. Shop for High Interest Savings Accounts

To make best use

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